51 Queen Street CARDIFF

Transcription

1 51 Queen Street CARDIFF Prime Retail Investment 1

2 Investment Summary Cardiff is the principal retail and commercial centre for South Wales The city is ranked in the top 6 for retail centres for the UK The property is located on 100% prime Queen Street Let to the undoubted covenant of Ann Summers Ltd Unexpired term of approximately 7.12 years Current rental income of 291,000 per annum Freehold Offers in excess of 4,020,000 (Four Million and Twenty Thousand Pounds), subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level would reflect an attractive Net Initial Yield of 6.75% after allowing for purchaser s costs of 7.27%. 2

3 P Location Cardiff is the capital city and administrative centre of Wales. It is also the principal retailing and commercial centre for South Wales. Cardiff is located approximately 45 miles west of Bristol, 42 miles east of Swansea and 155 miles west of London. The City benefits from excellent road communications and lies 4 miles south of the M4 motorway, providing direct access to London to the east and much of South Wales to the west. Cardiff is well served by the railway network with direct and frequent services to London Paddington (approximately 2 hours). It also provides an excellent local rail service, serving the Valleys (Caerphilly, Cwmbran, Pontypridd, Ebbw Vale and Merthyr Tydfil). Cardiff Airport Exeter Birmingham A40 CARDIFF A5 A49 M4 M54 M5 Bristol A303 Southampton A35 A40 M4 M27 M1 M40 Leicester M1 Milton Keynes A1(M) Reading A34 A43 A43 M3 A3 A1 A14 A27 London M25 M23 A23 A10 Cambridge M11 A27 A47 A11 A12 M2 M20 Norwich Ipswich The city benefits from international communications with Cardiff International Airport providing regular scheduled flights. Cardiff International Airport lies approximately 14 miles to the south west of the City Centre. Cardiff University Cathays Salisbury Road 51 Queen Street CARDIFF Pearl Street Cardiff Castle Queen Street Queen Street Principality Stadium Westgate Street St David s Shopping Centre Windsor Road East Tyndall Street Lewis Road Ninian Park Court Road Cardiff Central Dumballs Road Tyndall Street Lloyd George Avenue Central Link Ocean Way Cardiff City Football Club Clare Road Maps not to scale Sat Nav: CF10 2AS n B 3

4 A40 A465 A40 A48 M50 Demographics and Economic Profile Cardiff benefits from a large catchment area. 315,000 people live within a 15-minute drive time of the City centre. This number rises to over 2.3 million within an hour drive time. 43% of the population is aged in the high spending bracket of with 56% of the population classed in the social grade AB C1. Swansea A465 A470 A4042 A449 A466 M5 The city is also an important tourist destination and Cardiff City Council estimate that 18 million tourists visit the city each year, bringing in an approximate total spend in excess of 940million to the local economy. Catchment Primary Secondary Tertiary M4 Bridgend CARDIFF Newport Weston-super-Mare Bristol Bath Cardiff s role as a capital city enhances its profile as a major regional centre. It has excellent sporting, tourist and leisure facilities, including the Principality Stadium, exceptional arts facilities and the Cardiff Bay area, which has seen significant development in recent years. The city also has a significant student population with approximately 55,000 students at the three Universities; Cardiff University, Cardiff Metropolitan and the University of South Wales. 4

5 Retailing in Cardiff Cardiff is the prime shopping city in Wales and one of the premier shopping cities in the UK, ranked 6th, based on its PMA Retail Score. Cardiff s central shopping area comprises an estimated 2.22 million sq ft of retail floor space, which ranks the city 8th in the UK on this measure. OLLIE QUINN E-CIG Queen Street has long been established as the prime pitch in Cardiff from which three shopping centres: St David s, The Capitol and Queen s Arcade can be accessed. Queen Street is anchored by a number of large multi-national retailers including Next, M&S, Zara, TopShop and Primark who have flagship stores in this location. In addition to Queen Street, retailing in Cardiff has been further enhanced by the extension to St David s Centre, SD2. The centre is anchored by John Lewis, (their only store in Wales), and provides an additional 960,000 sq ft of retail, 25 restaurants and a 2,000-space car park. TIM HORTONS UNDER ALTERATION Situation The property is situated in the very heart of prime Queen Street, adjacent to JD Sports and Nationwide. Other nearby retailers include M&S, River Island, Zara, Top Shop, Next and Primark. The property is strategically positioned to benefit from the substantial footfall along this pitch, particularly as it sits between two important anchors, M&S and Primark. 5

6 Description The property is a single let retail unit arranged over three floors, forming part of a larger prime parade. Internally the property provides a well configured shop and the tenant currently utilises the ground floor as sales with ancillary accommodation at first and second floors. Accommodation The property comprises the following approximate net internal floor area: Floor sq ft sq m Ground Sales 4, Ground Ancillary Ground ITZA 1,094 units - First Ancillary 1, Second Ancillary

7 Tenure Freehold. Tenancy The entire property is let to Ann Summers Ltd on a full repairing and insuring lease for a term of 15 years from 24th June 2005, expiring on 23rd June There is a reversionary lease in place for a further 5 years expiring on 23rd June 2025 (approximately 7.12 years unexpired). The passing rent is 291,000 per annum. The property benefits from five yearly upward only rent reviews, with the next review due on 24th June Covenant Ann Summers is a British multinational lingerie retailer. The company has over 140 high street stores in the UK, Ireland and the Channel Islands. Rental Analysis We devalue the passing rent of 291,000 per annum to reflect Zone A. We have applied a rate of A/20 to the first floor ancillary and A/30 to the second floor ancillary. Investment Comparables We list below the most relevant comparable transactions: Address Tenant Term Certain Date Price NIY 56 Queen Street HSBC 10 Years Dec ,900, % 4-6 Queen Street Starbucks 9.5 Years Mar ,705, % 70 Queen Street Carphone Warehouse 6 Years Aug ,950, % The last three years audited accounts are as follows: Fiscal Consolidated GBP 24 Jun 2017 Fiscal Consolidated GBP 25 Jun 2016 Fiscal Consolidated GBP 27 Jun 2015 Sales Turnover 109,011, ,542, ,818,310 Profit/(Loss) Before Taxes 2,910,121 1,041,385 1,025,990 Tangible Net Worth 47,485,759 46,751,496 47,844,808 Net Current Assets 45,536,539 46,784,938 45,755,079 The Dun & Bradstreet Rating for Ann Summers Ltd is 5A 1 which represents their highest ranking of a company s financial strength and a minimum risk of business failure. 7

8 EPC A copy of the EPC is available upon request. VAT The property is elected for VAT. It is anticipated that the sale will be treated as a transfer of a going concern (TOGC). Proposal We have been instructed to seek offers in excess of 4,020,000 (Four Million and Twenty Thousand Pounds), subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level would reflect an attractive Net Initial Yield of 6.75% after allowing for purchaser s costs of 7.27%. Further Information For further information or to arrange an inspection of the property, please contact: Ben Tyack Charlie Neil T: +44 (0) T: +44 (0) E: btyack@twkeil.com E: cneil@twkeil.com MISREPRESENTATION ACT The agents for themselves and for the vendors or lessors of the property whose agents they are give notice that: (i) these particulars are given without responsibility of The agents or the vendors or lessors as a general outline only for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) The agents cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and any prospective purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy of each of them; (iii) no employee of The agents (and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; (iv) VAT may be payable on purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; (v) except in respect of death or personal injury caused by the negligence of The agents, its employees or servants, The agents will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars save to the extent that any statement made in these particulars has been made fraudulently.